The Fiscal Year 2005 General Fund Operating Budget increases 5.4 percent, or $67.0 million, from the adjusted 2004 budget, but is a 3 percent increase in projected on-going expenses over FY 2004. Most of that increase stems from employee wage increments and the first across-the-board salary adjustment in three years.
Our budget falls within the guideline established by the Spending Affordability Committee (SAC). Under SAC guidelines, the budget (excluding capital items and non-county source funds) could grow by an adjusted 4.0 percent. The basic growth factor allowed under the SAC guidelines reflects estimated personal income growth in Baltimore County. However, actual tax collections will lag behind this projected growth. In addition, State Aid to Baltimore County was cut significantly for the second year in a row as the State government tries to resolve its fiscal difficulties. In FY 2005, total County revenues will increase only 2 percent over the FY2004 level. Therefore, the proposed FY 05 General Fund Budget will fall $12 million below the limit set by the Spending Affordability Committee.
There are no new taxes levied to fund the General Fund budget. However, an increase (from 50 cents to 75 cents) in the 911 Fee for the County's Emergency Communication System will become effective near the start of the fiscal year. The income tax rate of 2.83 percent is unchanged and the real property tax rate will remain at $1.115 per $100 of assessed value. The personal property rate remains at $2.7875 and the Homestead Assessment Growth Cap continues at 4 percent. The most notable revenue adjustment stems from two one-time income tax disbursements from local funds held by the State normally for a 3-year period. The two disbursements, $12 million each to FY 2004 and 2005, will be used to meet one-time needs for funding Capital Budget projects.
As discussed with the FY 2004 budget submission, the Total Operating Budget, as displayed in this document has undergone a dramatic change from previous adopted budgets. In the past, the budget document included only governmental funds and did not identify the County's various enterprise funds, i.e., those business-type activities that establish fees and charges designed to make the fund self-supporting. The County's enterprise funds include the Public Schools Food Service Fund, the Community College Auxiliary Fund, the Recreation and Parks Facilities Fund and now the Metropolitan District Water & Sewer Fund (albeit previously Metro was classified as a restricted governmental fund). In this document, some figures will compare the "Total Operating Budget" when enterprise funds are excluded. At other times, comparisons of the "Government-wide Operating Funds" will include enterprise fund expenditure estimates.
For FY 2005, the Total Operating Budget (which includes the General Fund, the Gifts & Grants Fund, direct State aid to the Board of Education and Community College, etc.) totals $1,957,518,186. It reflects a 5.7 percent increase over the Adjusted FY 2004 Appropriation of $1,851,238.445. Most notable of the increase in non-general fund activity is the increase in Bridge to Excellence (Thornton Aid) funding for public schools.
Revised April 22, 2004
Courthouse 